Articles

The ESOP experts of SES Advisors write and publish articles about a range of ESOP-related topics—from basic overviews to in-depth technical articles. We invite you to review our online library and contact us when you are ready to discuss your situation.

Introduction to ESOPs Topics

ESOPs in Business Succession Planning
Published Spring 2011 in Boston Bar Association’s Business Law Section Newsletter
SES Advisors’ Rob Edwards coauthored this article, which summarizes the special treatment of ESOPs, explains how leveraged ESOPs work and discusses key ESOP valuation concepts that apply to ESOP transactions.
Crafting a Business Owned by Its Workers
Published May 23, 2011 in The Philadelphia Inquirer
This article shares the story of how and why Greensaw Design & Build L.L.C. became an ESOP company.
Co-Ops and ESOPs Offer Strengths and Challenges
Published May 23, 2011 in The Philadelphia Inquirer
SES Advisors’ Jim Steiker outlines some of the pros and cons of worker cooperatives.
Understanding ESOPs
Published March 2011 in Financier Worldwide Magazine
This article provides an overview of ESOPs and includes comments from Jim Steiker.
ESOP Plans Let Founders Cash Out
Published June 17, 2010 on CnnMoney.com
This article profiles a number of ESOP companies—including Organically Grown Company, an SES Advisors client.
Inside Eileen Fisher’s Employee Stock Plan
Published January 22, 2007 in The Wall Street Journal
This article profiles Eileen Fisher, an SES Advisors client, and the company’s experiences initiating an ESOP.
Mutual Benefits
Published in the July 2006 issue of Entrepreneur Magazine
This article highlights SES Advisors’ ESOP consulting services.
Selling In: Liquidity & Succession Using an ESOP
Published Spring 2006 in MHEDA Journal
Jim Steiker authored this article, which provides a high-level overview of ESOPs, how they work and how they can benefit multiple stakeholders.
How an ESOP Can Help You Achieve Your Succession Goals
Published Autumn 2005 in Family Business Magazine
This article provides an overview of ESOPs and their potential succession planning, liquidity, tax and estate planning benefits.
The ABCs of ESOPs
Published in the March/April 2005 issue of Engineering, Inc.
Jim Steiker joins other ESOP experts in discussing why engineering firms can be ideal candidates for Employee Stock Ownership Plans.
Business Succession Planning and the ESOP Alternative
Published in the October-November 2004 edition of the Business Development Journal
“An Employee Stock Ownership Plan – or ‘ESOP,’ is a tax-qualified retirement plan that invests primarily in employer stock,” writes Jim Steiker. “However, ESOPs offer much more than just employee benefits. To owners of closely held contractor firms, an ESOP can be used as a tool of corporate finance and a vehicle for owner buyouts.”
ESOP Participants and Shareholder Rights
Jim Steiker wrote this chapter from the book "ESOPs and Corporate Governance."
Companies See Benefits of Employee Ownership
Published in June 2003 in the Providence Business News
This article profiles Gripnail Corporation, an SES Advisors client, and quotes SES Advisors’ Rob Edwards.

Advanced ESOP Topics

Legal Update
Published July 2011 in The ESOP Association’s ESOP Report
Steve Greenapple provides a summary of recent case law developments concering ERISA.
Legal Update
Published March 2011 in The ESOP Association’s ESOP Report
Rob Edwards addresses Stock Drop Case updates and the IRS Notice clarifying the meaning of “Readily Tradable” employer securities.
The ESOP Blindside—And How to Protect It
Published February 4, 2011 in Life Insurance Selling
This article, which quotes Jim Steiker, addresses the risk of disability among key owner-employees.
Partial Plan Terminations and their Impact on ESOP Companies in a Difficult Economy
Published July 2010 in The ESOP Association’s ESOP Report
Brian Wurpts discusses the types and causes of partial plan terminations and explores the implications for ESOP companies.
Legal Update
Published June 2010 in The ESOP Association’s ESOP Report
Steven Greenapple addresses interference with ERISA rights and retaliation.
Warrants in ESOP Transactions
Published Spring 2008 in the Journal of Employee Ownership Law and Finance
Jim Steiker describes how warrants are used as part of the financing structure of leveraged ESOP transactions and discusses key corporate finance and federal tax considerations in structuring ESOP financing arrangements involving warrants.
Teamwork: Plan Sponsor and ESOP Recordkeeper
Published December 2007 in The ESOP Association’s ESOP Report
SES Advisors’ Mychelle Holloway explains what companies need to provide to their ESOP recordkeeper—and why it’s so important.
Why is My TPA Asking for That?
Published in February 2005 as a Guest Column for NCEO
Mychelle Holloway explains some important changes and how they are affecting ESOP companies and their plan administrators.
ESOPs in S Corporations
Published Spring 2004 in the Philadelphia Estate Planning Council Newsletter
This article, co-authored by Jim Steiker, highlights the potential for abuse and scams—and explains how to avoid them.
ESOP Fiduciary Committees
Published 2004 in the Journal of Employee Ownership Law and Finance
Co-authored by Jim Steiker, this article reviews the legal standards that govern ESOP committees.

SES Advisors’ Client Newsletter (registration required)

November 2011
Brian Wurpts addresses share redemption and share re-leveraging as other strategies to manage plan funding decisions, and their implications on repurchase obligation, in Part II of an article that appeared in the August 2011 Client Alert.  Mychelle Holloway discusses when and how to use the new Form 8955-SSA, and all about the changes to the Form 5558, released by the Internal Revenue Service earlier this year.
August 2011
Diane Fanelli follows up her last article on rebalancing with a summary of reshuffling. Brian Wurpts discusses the basics of distributions, then presents some options for funding benefit distributions and the implications of benefit funding decisions on repurchase obligation.
March 2011
Diane Fanelli discusses rebalancing as an option for ESOPs. Barbara Krumbhaar details all you need to know about plan record retention including what documents should be kept, for how long and by whom. Steven Greenapple answers a frequently asked client question about whether a pass-through vote is needed for an ESOP company stock sale.
November 2010
Mary Beth Gray provides a "how to" of the issues you need to consider when creating a distribution policy, and what is or is not permitted by the IRS. Tabitha Croscut discusses diversification language in plans and what the IRS decided was the definition of a "qualified participant."
July 2010
Brian Wurpts discusses how an ESOP company's funding decisions can alleviate or exacerbate the "Have/Have Not" problem and ESOP sustainability concerns. Steve Magowan explains how to avail yourself of the protective provisions of IRS Notice 2010-6 for nonqualified deferred compensation plans.
November 2009
Margaret Steere offers possible solutions for seller-financed ESOP companies who don't have enough cash to make a contribution to their ESOP. Karen Hurley, Senior Plan Administrator, tells you everything you need to know about ERISA Fidelity Bonds and how to stay in compliance for the DOL. You will also find a chart with the IRS' 2010 cost-of-living adjustments applicable to dollar limitations for pension plans.
August 2009
Guest authors from Praxis Consulting Group discuss seven objectives for communicating to employees during hard economic times.
February 2009
Brian Wurpts explains the Employee Plans Compliance Resolution System (EPCRS) in his article "Operational Failures & Forgiveness." Mychelle Holloway discusses "What's New in ESOP Administration" for 2009.
November 2008
In this issue, Meg Shrum addresses financing in today's challenging lending market, Brian Wurpts discusses partial plan terminations, and Rob Edwards provides a timely reminder about the upcoming 409A deferred compensation compliance deadline.
June 2008
Jane Rogers addresses how to locate missing participants and Steven Greenapple explains the various fiduciary issues raised when selling an ESOP company.
November 2007
Steve Magowan addresses the proposed change in taxation of options of S Corps with ESOPs and the possible far reaching ramifications of the legislation. Rob Edwards reviews 409a and the extension of transition relief for deferred compensation plans.
June/July 2007
Rob Edwards and Steven Greenapple address corporate governance, and Diane Fanelli discusses the Pension Protection ACT of 2006.

Consult your advisors for up-to-date legal and tax information. IRS CIRCULAR 230 DISCLOSURE: Pursuant to Treasury Regulations, any tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used or relied upon by you or any other person, for the purpose of (i) avoiding penalties under the Internal Revenue Code, or (ii) promoting, marketing or recommending to another party any tax advice addressed herein. Please contact a member of the firm if you require a formal, written tax opinion that satisfies applicable IRS requirements.

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